Picton Property Income Limited Sustainability Report 2022

Appendix

Introduction

Environmental Focus

Stakeholder Engagement

Governance

Glossary

Asset IQ – a CBRE product that monitors the use of building systems. Better Buildings Partnership (BBP) – a collaboration of UK Commercial Property owners working to improve sustainability of building stock BMS (Building Management System) – a computer-based control system installed in buildings that control and monitor the building’s mechanical and electrical equipment such as ventilation, lighting, power systems, fire systems, and security systems. BREEAM (Building Research Establishment Environmental Assessment Method) – An established sustainability rating assessment for projects, infrastructure and buildings. It assesses assets across their life cycle, from new construction to in-use and refurbishment. www.breeam.com CO 2 (Carbon Dioxide) – the most abundant greenhouse gas in our planet’s atmosphere. It is often the benchmark gas measured for defining a company’s emissions. EPC (Energy Performance Certificate) – a certificate which provides a rating based on set criteria to measure the energy efficiency of a lettable unit. The scale ranges from A–G. EPRA (European Public Real Estate Association) – a non-profit association which represents Europe’s publicly listed property companies on voluntary and mandatory reporting, and publishes sustainability reporting Best Practices Recommendations (BPR). www.epra.com ERV (Estimated Rental Value) – the estimated annual market rent for a property.

ESG (Environmental Social Governance) – a framework that socially conscious investors use to screen potential investments. Environmental criteria consider how a company performs as a steward of nature. Social criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. Governance deals with a company’s leadership, executive pay, audits, internal controls, and shareholder rights. EV (Electric Vehicle) – a vehicle powered using a battery, solar panels, fuel cells or electric generator. Fitwel – a commercial building certification based on health and wellness criteria. GHG – greenhouse gas. GHG absolute – total GHG emissions. GHG intensity – a normalised metric set against an economic output such as number of employees, revenue or area. Allows for an emission reduction target to be set which accounts for economic growth. GRESB (Global Real Estate Sustainability Benchmarking) – an investor driven organisation assessing the sustainability performance of the real estate sector, through detailed analysis of ESG metrics from the corporate to the individual asset level. www.gresb.com Grid Decarbonisation – refers to the changing methods of grid power generation which rely less on fossil fuels and more on renewable/sustainable energy sources resulting in fewer emissions per unit of electricity generated. ISO – an independent, non-governmental international organisation with a membership of 164 national standards bodies, that develops voluntary, consensus-based, market relevant international standards that support innovation and provide solutions to global challenges.

KG/ CO 2 / m

REIT (Real Estate Investment Trust) – a REIT is a listed company that owns income producing real estate and distributes the income to shareholders. Companies that seek REIT status must qualify by meeting specific regulatory guidelines and criteria. REITs trade on major exchanges like other securities and provide investors with a liquid exposure within the real estate market. Scope 1 emissions – direct emissions from owned or controlled sources. Scope 2 emissions – Scope 2 emissions are indirect emissions from the generation of purchased energy. Scope 3 emissions – all indirect emissions (not included in Scope 2) that occur in the value chain of the reporting company, including both upstream and downstream emissions (e.g. occupier emissions). tCO 2 e – tonnes of carbon dioxide equivalent, which is a measure that allows you to compare the emissions of other greenhouse gases relative to one unit of CO 2 . It is calculated by multiplying the greenhouse gas’s emissions by its 100-year global warming potential. For this Report, we have utilised the UK Government’s DEFRA 2020 emission conversion factors. These factors reflect the average emissions intensity of grids on which energy consumption occurs (using mostly grid-average emission factor data) with methodology and assumptions changing year on year. TCFD (Task Force on Climate-related Financial Disclosures) – a framework to help public companies disclose climate-related risks. UKGBC (UK Green Buildings Council) – a charity launched by the construction industry to promote sustainability across the built environment value chain.

2 – Kilogrammes of CO

2 per square metre

– a measure of emissions intensity. KPI (Key Performance Indicator) – a specific criteria set to ensure adherence to overall strategy aims. kWh (Kilowatt Hour) – a standard unit for measuring electricity consumption. kWh/m 2 /year – a unit of measure of a property based on the annual electricity consumption by a single square metre. This aggregation of energy in this way allows for a direct comparison between properties. LED (Light Emitting Diode) – an energy efficient type of light bulb. MEES (Minimum Energy Efficiency Standards) – a piece of legislation set by the UK Government. From April 2018 a landlord is unable to renew or grant a new tenancy (over six months) if the property has an Energy Performance Certificate (EPC) rating of F or G. MSCI – a global market index provider enabling comparison of investment performance. NZC (Net Zero Carbon) – the point at which the amount of carbon being released into the atmosphere is equal to the amount removed from the atmosphere. Offsetting – the process of removing carbon from the atmosphere to balance emissions into the atmosphere. PIR – Passive Infared Sensor – a device used to allow automatic lighting control. PRI (Principles for Responsible Investment) – a global proponent of responsible investment that supports an international network of investors to incorporate ESG factors into their investment and ownership decisions.